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| Nevada                             |   | 61-1504884                              |
|------------------------------------|--------|-----------------------------------------|
| (State of Incorporation) |   | (IRS Employer ID Number) |

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| Large accelerated filer  ̈                                                                                | Accelerated filer  ̈         |
|------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
| Non-accelerated filer  ̈ (Do not check if a smaller reporting company) |
|                                                                                                                         | Smaller reporting company x |

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|                                                                                                                                                               | Page   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I - FINANCIAL INFORMATION                                                                                                                                     |   |
|                                                                                                                                                               |   |
| Item 1. Financial Statements                                                                                                                                       |   |
|                                                                                                                                                               |   |
| Consolidated Balance Sheets –March 31, 2011 (Unaudited) and December 31, 2010                                                                                | F-1    |
|                                                                                                                                                               |   |
| Consolidated Statements of Operations (Unaudited) - Three months ended March 31, 2011 and 2010 and The period from July 5, 2006 (Inception) to March 31, 2011      | F-2    |
|                                                                                                                                                               |   |
| Consolidated Statements of Changes in Deficit (Unaudited) - From July 5, 2006 (Inception) to March 31, 2011                                                        | F-3    |
|                                                                                                                                                               |   |
| Consolidated Statements of Cash Flows (Unaudited) - Three months ended March 31, 2011 and 2010 and the period from July 5, 2006 (Inception) to March 31, 2011 | F-4    |
|                                                                                                                                                               |   |
| Notes to the (Unaudited) Financial Statements                                                                                                                      | F-5    |
|                                                                                                                                                               |   |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations                                                                      | 12     |
|                                                                                                                                                               |   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk - Not Applicable                                                                                | 15     |
|                                                                                                                                                               |   |
| Item 4. Controls and Procedures                                                                                                                                    | 15     |
|                                                                                                                                                               |   |
| PART II - OTHER INFORMATION                                                                                                                                        |   |
|                                                                                                                                                               |   |
| Item 1. Legal Proceedings -Not Applicable                                                                                                                          | 16     |
|                                                                                                                                                               |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                | 16     |
|                                                                                                                                                               |   |
| Item 3. Defaults Upon Senior Securities - Not Applicable                                                                                                           | 16     |
|                                                                                                                                                               |   |
| Item 4. Submission of Matters to a Vote of Security Holders - Not Applicable                                                                                       | 16     |
|                                                                                                                                                               |   |
| Item 5. Other Information - Not Applicable                                                                                                                         | 16     |
|                                                                                                                                                               |   |
| Item 6. Exhibits                                                                                                                                                   | 17     |
|                                                                                                                                                               |   |
| SIGNATURES                                                                                                                                                         | 17     |

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|                                                                                                                                                                           |   | March 31, |        |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                           |   | 2011           |        |   | 2010              |   |
|                                                                                                                                                                           |   | (Unaudited)    |        |   |              |   |
| ASSETS                                                                                                                                                                         |   |           |        |   |              |   |
|                                                                                                                                                                           |   |           |        |   |              |   |
| Current assets:                                                                                                                                                                |   |           |        |   |              |   |
| Cash                                                                                                                                                                           |   | $              | 2,454       |   |              | $      | 1,822 |   |
| Prepaid expenses                                                                                                                                                               |   |           | 2,382       |   |              |   | 2,193 |   |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Total current assets                                                                                                                                                           |   |           | 4,836       |   |              |   | 4,015 |   |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Property and equipment, net                                                                                                                                                    |   |           | 500,404     |   |              |   | 504,026 |   |
| Intangible assets                                                                                                                                                              |   |           | 174,428     |   |              |   | 174,428 |   |
|                                                                                                                                                                           |   |           | 674,832     |   |              |   | 678,454 |   |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Total assets                                                                                                                                                                   |   | $              | 679,668     |   |              | $      | 682,469 |   |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| LIABILITIES AND DEFICIT                                                                                                                                                        |   |           |        |   |              |   |   |   |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Current liabilities:                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Accounts payable                                                                                                                                                               |   | $              | 1,220,128   |   |              | $      | 1,164,827 |   |
| Accrued interest                                                                                                                                                               |   |           | 234,710     |   |              |   | 365,920 |   |
| Notes payable, net of discount of $81,600 (2011), $42,474 (2010)                                                                                                               |   |           | 1,067,910   |   |              |   | 1,329,526 |   |
| Derivative liabilities                                                                                                                                                         |   |           | 157,818     |   |              |   | 428,414 |   |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Total liabilities (all current)                                                                                                                                                |   |           | 2,680,566   |   |              |   | 3,288,687 |   |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Deficit:                                                                                                                                                                       |   |           |        |   |              |   |   |   |
| China Wi-Max shareholders' deficit:                                                                                                                                            |   |           |        |   |              |   |   |   |
| Common stock; $.001 par value; 100,000,000 shares authorized; 44,709,238 and 37,813,042 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively |   |           | 44,709      |   |              |   | 37,813 |   |
| Additional paid-in capital                                                                                                                                                     |   |           | 8,653,331   |   |              |   | 7,820,089 |   |
| Accumulated other comprehensive income                                                                                                                                         |   |           | 57,235      |   |              |   | 53,525 |   |
| Deficit accumulated during the development stage                                                                                                                               |   |           | (10,714,397 | )      |              |   | (10,480,539 | ) |
| Total China Wi-Max  shareholders' deficit                                                                                                                            |   |           | (1,959,122  | )      |              |   | (2,569,112 | ) |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Noncontrolling interest                                                                                                                                                        |   |           | (41,776     | )      |              |   | (37,106 | ) |
| Total deficit                                                                                                                                                                  |   |           | (2,000,898  | )      |              |   | (2,606,218 | ) |
|                                                                                                                                                                           |   |           |        |   |              |   |   |   |
| Total liabilities and deficit                                                                                                                                                  |   | $              | 679,668     |   |              | $      | 682,469 |   |

----

|                                                                                 |   |               |       |   |      |   |       | Period from  |   |
|--------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-----------|--------|------------|--------------|--------|
|                                                                                 |   |               |       |   |      |   |       | July 5, 2006 |   |
|                                                                                 |   |               |       |   |      |   |       | (inception)  |   |
|                                                                                 |   | Three Months Ended |       |   | through   |   |
|                                                                                 |   | March 31,          |       |   | March 31, |   |       | March 31,    |   |
|                                                                                 |   | 2011               |       |   | 2010      |   |       | 2011         |   |
|                                                                                 |   |               |       |   |      |   |       |         |   |
| Operating expenses:                                                                  |   |               |       |   |      |   |       |         |   |
| General and administrative expense                                                   |   | $                  | (196,999   | )      |      | $      | (1,694,450 | )            |   | $ | (8,350,332 | ) |
| Operating loss                                                                       |   |               | (196,999   | )      |      |   | (1,694,450 | )            |   |   | (8,350,332 | ) |
|                                                                                 |   |               |       |   |      |   |       |         |   |   |   |   |
| Other expense:                                                                       |   |               |       |   |      |   |       |         |   |   |   |   |
| Interest expense                                                                     |   |               | (88,377    | )      |      |   | (93,181    | )            |   |   | (2,239,898 | ) |
| Gain (loss) on derivatives                                                           |   |               | 46,848     |   |      |   | -          |         |   |   | (165,943 | ) |
|                                                                                 |   |               | (41,529    | )      |      |   | (93,181    | )            |   |   | (2,405,841 | ) |
|                                                                                 |   |               |       |   |      |   |       |         |   |   |   |   |
| Net loss                                                                             |   |               | (238,528   | )      |      |   | (1,787,631 | )            |   |   | (10,756,173 | ) |
| Net loss attributable to the noncontrolling interest                                 |   |               | (4,670     | )      |      |   | (15,591    | )            |   |   | (41,776 | ) |
| Net loss attributable to China Wi-Max                                                |   |               | (233,858   | )      |      |   | (1,772,040 | )            |   |   | (10,714,397 | ) |
|                                                                                 |   |               |       |   |      |   |       |         |   |   |   |   |
| Foreign currency translation gain                                                    |   |               | 3,710      |   |      |   | 2,034      |         |   |   | 57,235 |   |
|                                                                                 |   |               |       |   |      |   |       |         |   |   |   |   |
| Comprehensive loss                                                                   |   | $                  | (234,818   | )      |      | $      | (1,785,597 | )            |   | $ | (10,698,938 | ) |
|                                                                                 |   |               |       |   |      |   |       |         |   |   |   |   |
| Basic and diluted net loss per share attributable to China W-Max common shareholders |   | $                  | *          |   |      | $      | (0.12      | )            |   |   |     |    |
| Weighted average number of common shares outstanding                                 |   |               | 42,432,763 |   |      |   | 15,002,227 |         |   |   |    |   |

----

|                                                                                                           |   | China Wi-Max Shareholders |       |   |    |   |   |          |   |
|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------|------------|--------|---------|--------|--------|---------------|--------|
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   | Accumulated |   |   | Deficit |   |   |   |   |   |   |   |
|                                                                                                                |   |                      |       |   |    |   |   | Additional    |   |   | other |   |   | accumulated |   |   |   |   |   | Total |   |
|                                                                                                                |   | Common stock              |       |   | paid-in |   |   | comprehensive |   |   | during the |   |   | Noncontrolling |   |   | shareholders' |   |
|                                                                                                                |   | Shares                    |       |   | Amount  |   |   | capital       |   |   | income |   |   | development stage |   |   | Interest |   |   | deficit |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash between July 5, 2006 (inception) and December 31, 2006 at par value ($0.001 per share) |   |                      | 3,825,000  |   |    | $      | 3,825  |          |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 3,825 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                      |       |   |    |   |   |          |   |   | - |   |   |   | - |   |   |   | (8,538 | ) |   |   |   |   |   |   | (8,538 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2006                                                                                         |   |                      | 3,825,000  |   |    |   | 3,825  |          |   |   | - |   |   |   | - |   |   |   | (8,538 | ) |   |   | - |   |   |   | (4,713 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash between January and June 2007 at par value ($0.001 per share)                          |   |                      | 5,230,000  |   |    |   | 5,230  |          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,230 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash between June and December 2007 at par value ($0.001 per share)                         |   |                      | 260,000    |   |    |   | 260    |          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 260 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services, valued at $0.25 per share                                                         |   |                      | 455,000    |   |    |   | 455    |          |   |   | 113,295 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 113,750 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (444,590 | ) |   |   | - |   |   |   | (444,590 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2007                                                                                         |   |                      | 9,770,000  |   |    |   | 9,770  |          |   |   | 113,295 |   |   |   | - |   |   |   | (453,128 | ) |   |   | - |   |   |   | (330,063 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares of common stock cancelled at par value                                                                       |   |                      | (260,000   | )      |    |   | (260   | )             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (260 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services, valued at $0.25 per share                                                         |   |                      | 884,000    |   |    |   | 884    |          |   |   | 220,116 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 221,000 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued upon conversion of notes and accrued interest in December 2008, valued at $0.25 per share       |   |                      | 391,002    |   |    |   | 391    |          |   |   | 97,362 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 97,753 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options vested during the period                                                                      |   |                      | -          |   |    |   | -      |          |   |   | 103,275 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 103,275 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (1,716,195 | ) |   |   | - |   |   |   | (1,716,195 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income adjustments, gain on foreign currency translation                                        |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | 25,853 |   |   |   | - |   |   |   | - |   |   |   | 25,853 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2008                                                                                         |   |                      | 10,785,002 |   |    |   | 10,785 |          |   |   | 534,048 |   |   |   | 25,853 |   |   |   | (2,169,323 | ) |   |   | - |   |   |   | (1,598,637 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                                                    |   |                      | 1,900,000  |   |    |   | 1,900  |          |   |   | 473,100 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 475,000 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued upon conversion of notes and accrued interest                                                   |   |                      | 1,969,002  |   |    |   | 1,969  |          |   |   | 549,422 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 551,391 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options vesting during the period                                                                     |   |                      | -          |   |    |   | -      |          |   |   | 336,361 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 336,361 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (3,108,512 | ) |   |   | - |   |   |   | (3,108,512 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income adjustments, gain on foreign currency translation                                        |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | 125 |   |   |   | - |   |   |   | - |   |   |   | 125 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2009                                                                                         |   |                      | 14,654,004 |   |    |   | 14,654 |          |   |   | 1,892,931 |   |   |   | 25,978 |   |   |   | (5,277,835 | ) |   |   | - |   |   |   | (3,344,272 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                                                    |   |                      | 6,066,551  |   |    |   | 6,067  |          |   |   | 955,705 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 961,772 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued upon conversion of notes and accrued interest                                                   |   |                      | 16,832,487 |   |    |   | 16,832 |          |   |   | 3,914,964 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,931,796 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock and warrants issued to convertible note holders                                                        |   |                      | 260,000    |   |    |   | 260    |          |   |   | 104,978 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 105,238 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options vesting during the period                                                                     |   |                      | -          |   |    |   | -      |          |   |   | 951,511 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 951,511 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (5,202,704 | ) |   |   | (37,106 | ) |   |   | (5,239,810 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income adjustments, gain on foreign currency translation                                        |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | 27,547 |   |   |   | - |   |   |   | - |   |   |   | 27,547 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2010                                                                                         |   |                      | 37,813,042 |   |    |   | 37,813 |          |   |   | 7,820,089 |   |   |   | 53,525 |   |   |   | (10,480,539 | ) |   |   | (37,106 | ) |   |   | (2,606,218 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                                                    |   |                      | 1,000,000  |   |    |   | 1,000  |          |   |   | 19,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued upon conversion of notes and accrued interest                                                   |   |                      | 5,896,196  |   |    |   | 5,896  |          |   |   | 776,554 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 782,450 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed services                                                                                                |   |                      | -          |   |    |   | -      |          |   |   | 30,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 30,000 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of options vesting during the period                                                                     |   |                      | -          |   |    |   | -      |          |   |   | 7,688 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,688 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                            |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | - |   |   |   | (233,858 | ) |   |   | (4,670 | ) |   |   | (238,528 | ) |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income adjustments, gain on foreign currency translation                                        |   |                      | -          |   |    |   | -      |          |   |   | - |   |   |   | 3,710 |   |   |   | - |   |   |   | - |   |   |   | 3,710 |   |
|                                                                                                                |   |                      |       |   |    |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances, March 31, 2011                                                                                            |   |                      | 44,709,238 |   |    | $      | 44,709 |          |   | $ | 8,653,331 |   |   | $ | 57,235 |   |   | $ | (10,714,397 | ) |   | $ | (41,776 | ) |   | $ | (2,000,898 | ) |

----

|                                                                        |   |               |     |   | Period from    |   |
|-----------------------------------------------------------------------------|--------|--------------------|----------|--------|----------------|--------|
|                                                                        |   |               |     |   |           |   |   | July 5, 2006 |   |
|                                                                        |   |               |     |   |           |   |   | (Inception) |   |
|                                                                        |   | Three Months Ended |     |   | through        |   |
|                                                                        |   | March 31, 2011     |     |   | March 31, 2010 |   |   | March 31, 2011 |   |
|                                                                        |   |               |     |   |           |   |   |   |   |
| Cash flows from operating activities:                                       |   |               |     |   |           |   |   |   |   |
| Net loss                                                                    |   | $                  | (238,528 | )      |           | $      | (1,787,631 | ) |   | $ | (10,756,173 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |               |     |   |           |   |   |   |   |   |   |   |
| Stock based compensation                                                    |   |               | 27,687   |   |           |   | 1,222,002 |   |   |   | 3,226,119 |   |
| Amortization of debt issue costs                                            |   |               | 39,292   |   |           |   | 4,329 |   |   |   | 108,767 |   |
| Contributed services                                                        |   |               | 30,000   |   |           |   |   |   |   |   | 30,000 |   |
| (Gain)/loss on derivative                                                   |   |               | (46,848  | )      |           |   | - |   |   |   | 165,943 |   |
| Impairment loss                                                             |   |               | -        |   |           |   | - |   |   |   | 131,250 |   |
| Depreciation                                                                |   |               | 7,221    |   |           |   | 6,911 |   |   |   | 70,774 |   |
| Amortization                                                                |   |               | -        |   |           |   | - |   |   |   | 25,649 |   |
| Changes in assets and liabilities:                                          |   |               |     |   |           |   |   |   |   |   |   |   |
| (Increase)/decrease in prepaid expenses                                     |   |               | (189     | )      |           |   | 20,474 |   |   |   | (2,382 | ) |
| Decrease in other assets                                                    |   |               | -        |   |           |   | - |   |   |   | 38,139 |   |
| Increase in accounts payable                                                |   |               | 55,301   |   |           |   | 267,356 |   |   |   | 1,220,128 |   |
| Increase in accrued interest                                                |   |               | 44,085   |   |           |   | 88,852 |   |   |   | 2,079,851 |   |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Net cash used in operating activities                                       |   |               | (81,979  | )      |           |   | (177,707 | ) |   |   | (3,661,936 | ) |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                       |   |               |     |   |           |   |   |   |   |   |   |   |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Purchase of property and equipment                                          |   |               | -        |   |           |   | - |   |   |   | (521,329 | ) |
| Purchase of intangible assets                                               |   |               | -        |   |           |   | - |   |   |   | (364,195 | ) |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Net cash used in investing activities                                       |   |               | -        |   |           |   | - |   |   |   | (885,524 | ) |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                       |   |               |     |   |           |   |   |   |   |   |   |   |
| Proceeds from issuance of notes payable and warrants                        |   |               | 92,500   |   |           |   | 198,500 |   |   |   | 4,593,744 |   |
| Debt repayment                                                              |   |               | (10,000  | )      |           |   | - |   |   |   | (55,000 | ) |
| Proceeds from issuance of common stock                                      |   |               | -        |   |           |   | - |   |   |   | 9,055 |   |
| Debt issue costs                                                            |   |               | -        |   |           |   | - |   |   |   | (5,270 | ) |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Net cash provided by financing activities                                   |   |               | 82,500   |   |           |   | 198,500 |   |   |   | 4,542,529 |   |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                                     |   |               | 111      |   |           |   | 1,953 |   |   |   | 7,385 |   |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Net increase in cash                                                        |   |               | 632      |   |           |   | 22,746 |   |   |   | 2,454 |   |
| Cash, beginning of period                                                   |   |               | 1,822    |   |           |   | 34,524 |   |   |   | - |   |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Cash, end of period                                                         |   | $                  | 2,454    |   |           | $      | 57,270 |   |   | $ | 2,454 |   |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash investing and financing activities:     |   |               |     |   |           |   |   |   |   |   |   |   |
|                                                                        |   |               |     |   |           |   |   |   |   |   |   |   |
| Convertible notes and interest converted to common stock                    |   | $                  | 782,450  |   |           | $      | - |   |   | $ | 5,363,390 |   |

----

| 1. | Organization, basis of presentation, going concern and management's plans: |
|----|----------------------------------------------------------------------------|

----

----

| 2. | Summary of significant accounting policies: |
|----|---------------------------------------------|

----

| 3. | Property and equipment: |
|----|-------------------------|

|                          |   | March 31, 2011 |          |   | December 31, 2010 |   |
|-------------------------------|--------|--------------------------|---------------|--------|-----------------------------|--------|
|                          |   |                     |          |   |                        |   |
| Fiber optic cable             |   | $                        | 530,630       |   |                        | $      | 526,847 |   |
| Network equipment             |   |                     | 38,285        |   |                        |   | 38,012 |   |
| Computer equipment            |   |                     | 4,000         |   |                        |   | 4,000 |   |
|                          |   |                     |  572,915 |   |                        |   | 568,859 |   |
| Less accumulated depreciation |   |                     | (72,511       | )      |                        |   | (64,833 | ) |
|                          |   | $                        | 500,404       |   |                        | $      | 504,026 |   |

| 4.  | Intangible assets: |
|----------|--------------------|

----

| 5.  | Convertible notes payable: |
|----------|----------------------------|

|                                                                                                                                                                                                            |   |   |   |   | Balance Outstanding as of |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------------------------------------|-----------|
|                                                                                                                                                                                                            |   |   |   |   | March 31, 2011                 |      |   | December31,2010 |   |
| 12%, unsecured, convertible notes, originally due June 30, 2010 and prior; convertible at $0.19 to $0.25 per share, due on demand                                                                               |   |   |   |   | $                                        | 205,000   |   |   | $ | 205,000 |   |
| 10%, unsecured, convertible notes, note holder notice of conversion at $0.07 per share on December 31, 2010; notes for $275,000 converted in quarter ended March 31, 2011; remaining note converted in May 2011 |   | [A]    |   |   |                                     | 20,000    |   |   |   | 295,000 |   |
| 10%, unsecured, convertible notes, due prior to and as of December 31, 2010; convertible at $0.50 per share, due on demand                                                                                      |   |   |   |   |                                     | 735,000   |   |   |   | 735,000 |   |
| 10%, unsecured, convertible notes, due December 31, 2011; convertible at 20% of the 10-day average trading price during the previous 10 days immediately prior to conversion, net of discount of $15,320        |   | [B]    |   |   |                                     | 14,690    |   |   |   | 2,930 |   |
| 8%, unsecured, convertible notes,  $20,000 due  April 2011, $30,000 due July 2011, $32,500 due October 2011, $25,000 due December 2011; net of discount of $66,280                          |   | [C]    |   |   |                                     | 41,220    |   |   |   | 39,596 |   |
| Other unsecured notes to a related party shareholder, non-interest bearing, due on demand                                                                                                                       |   | [D]    |   |   |                                     | 52,000    |   |   |   | 52,000 |   |
| Total notes payable (all current)                                                                                                                                                                               |   |   |   |   | $                                        | 1,067,910 |   |   | $ | 1,329,526 |   |

----

----

| 6. | Derivative liabilities and Fair Value of Financial Instruments: |
|----|-----------------------------------------------------------------|

|            |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |
|----------------------|--------|--------------|---------|--------|--------------|--------|---------|--------------|--------|
|                 |   |         |    |   |         |   |    |         |   |
| Derivative liability |   |         | — |   |         | $      | 157,818 |         |   |   | — |   |

----

| Expected term           |   | 1 to 9 months |      |
|-------------------------|--------|---------------|-----------|
| Volatility              |   |          | 116% -185 | % |
| Risk-free interest rate |   |          | 0.05%-0.3 | % |
| Dividend yield          |   |          | 0         | % |

| 7. | Income taxes: |
|----|---------------|

| 8. | Deficit: |
|----|----------|

|                          |   |           |      |   | Weighted |   | Weighted    |
|-------------------------------|--------|----------------|-----------|--------|----------|--------|-------------|
|                          |   |           |      |   | Average  |   | Average     |
|                          |   | Number of |      |   | Exercise |   | Contractual |
|                          |   | Options        |      |   | Price    |   | Life        |
|                          |   |           |      |   |     |   |        |
| Outstanding, January 1, 2011  |   |           | 9,700,000 |   |     | $      | 0.32        |   |   |
| Granted during period         |   |           | -         |   |     |   | -           |   |      |
| Outstanding, March 31, 2011   |   |           | 9,700,000 |   |     | $      | 0.32        |   | 3.0 Years |
|                          |   |           |      |   |     |   |        |   |   |
| Exercisable at March 31, 2011 |   |           | 6,200,000 |   |     | $      | 0.46        |   | 3.3 Years |

|                          |   |           |      |   | Weighted Average |   |
|-------------------------------|--------|----------------|-----------|--------|-----------------------|--------|
|                          |   | Number of |      |   | Grant Date       |   |
|                          |   | Options        |      |   | Fair Value       |   |
|                          |   |           |      |   |                  |   |
|                          |   |           |      |   |                  |   |
| Non-vested at January 1, 2011 |   |           | 3,600,000 |   |                  | $      | 0.18 |   |
| Granted                       |   |           | -         |   |                  |   | - |   |
| Vested                        |   |           | (100,000  | )      |                  | $      | (0.22 | ) |
| Non-vested at March 31, 2011  |   |           | 3,500,000 |   |                  | $      | 0.18 |   |

----

| 8.  | Commitments: |
|----------|--------------|

----

----

----

----

----

| DATE OFSALE |         | TITLE OFSECURITIES |         | CONSIDERATION                       |         | CLASS OFPURCHASER |
|------------------|--------------|-------------------------|--------------|-------------------------------------|--------------|------------------------|
| 1/3/2011         |         | Common stock            |         | $32,500 Convertible Promissory Note |         | Business Associate     |
| 1/24/2011        |         | Common stock            |         | $25,000 Convertible Promissory Note |         | Business Associate     |
| 3/7/2011         |    | Common stock            |    | $25,000 Convertible Promissory Note |    | Business Associate     |

----

|                           | CHINA WI-MAX COMMUNICATIONS, INC. |
|--------------------------------|-----------------------------------|
|                           | (Registrant)                      |
|                           |                              |
| Dated:  May 23, 2011 | By: /s/ Steve T. Berman           |
|                           | Steven Berman                     |
|                           | Chief Executive Officer           |
|                           |                              |
| Dated: May 23, 2011            | By: /s/ Frank Ventura             |
|                           | Frank Ventura,                    |
|                           | Chief Financial Officer           |

----